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Does a restrictive covenant I was required to sign for stock compensation that amounted to less than 10,000 gross prevent me from seeking and accepting employment from a competitor with the Fortune 7 company that I’m currently employed?
Asked on September 19, 2018 under Employment Labor Law, Pennsylvania
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 2 years ago | Contributor
Restrictive covenants are enforceable--there are some limitations on their enforceability generally (e.g. only competitors; often, only for some period of time, and not forever)--but as stated, they are enforceable. So if you sign a restrictive covenant in exchange for stock, you can be held to the plain terms of the agreement you signed.